Key Highlights
-
Strike withdraws from proposed merger with Twenty One Capital and Elektron Energy
-
Jack Mallers resigns from Twenty One Capital CEO position while maintaining Strike leadership
-
Elektron Energy and Twenty One Capital maintain ongoing merger discussions
-
Tether adjusts corporate strategy following Strike’s departure from deal
-
Twenty One Capital pivots direction with new leadership structure
A Tether-supported initiative to merge Twenty One Capital, Strike, and Elektron Energy has collapsed following Strike’s decision to withdraw from the arrangement. Jack Mallers is stepping away from his position at Twenty One Capital while maintaining his leadership role at Strike. Meanwhile, Twenty One Capital and Elektron Energy are exploring a potential partnership under revised management as both organizations recalibrate their strategic approaches.
Strike Chooses Independence as Leadership Reshuffles
The original merger plan aimed to consolidate Bitcoin treasury management, cryptocurrency payment processing, and mining infrastructure within a single publicly-traded entity. That vision has been abandoned. Strike has opted to maintain its autonomous operations.
Jack Mallers has relinquished his chief executive position at Twenty One Capital, the role he held since the company’s inception. Despite this departure, he retains his CEO position at Strike and will continue guiding its strategic development. Raphael Zagury, previously heading Elektron Energy, has transitioned into the leadership role at Twenty One Capital.
According to a Bloomberg report, both Strike and Twenty One Capital have verified that the three-way merger has been terminated. Nevertheless, negotiations between Twenty One Capital and Elektron Energy continue to progress. Tether maintains controlling ownership positions in both entities.
Twenty One Capital Refines Bitcoin-Centric Vision
Tether unveiled the merger initiative in April, aiming to consolidate three distinct cryptocurrency enterprises into one publicly-listed corporation. The framework positioned Twenty One Capital as the Bitcoin treasury arm, Strike as the payment infrastructure provider, and Elektron Energy as the mining division. The reconfigured approach now eliminates Strike from consideration.
Raphael Zagury assumes control of Twenty One Capital’s direction following his appointment as chief executive. The organization seeks to reinforce its operational infrastructure, governance protocols, and capital markets presence. Furthermore, leadership is determined to evolve beyond passive Bitcoin accumulation.
The refreshed approach encompasses acquiring operational enterprises and optimizing capital deployment. Twenty One Capital intends to establish Bitcoin-collateralized lending platforms while diversifying financing mechanisms. The firm also targets the creation of more robust and consistent revenue streams.
Context Behind Tether’s Strategic Reconfiguration
Twenty One Capital debuted in 2025 with financial support from Tether, Cantor Fitzgerald, and SoftBank. Tether subsequently purchased SoftBank’s equity position, consolidating greater authority over the enterprise. The stablecoin provider has simultaneously broadened its portfolio across Bitcoin mining and digital infrastructure investments.
Previous merger proposals had garnered endorsement from Tether, which planned to approve the consolidation of these operations. The arrangement sought to establish a unified public entity encompassing treasury operations, payment systems, and mining activities. Ultimately, the parties withdrew from this comprehensive framework prior to finalization.
Strike has pursued independent expansion throughout this timeframe. The platform obtained a New York BitLicense and a money transmitter license from the New York Department of Financial Services in March. Elektron Energy maintains operational control of roughly 50 exahashes per second in Bitcoin mining power while keeping production expenses beneath current Bitcoin valuations.
